May 26, 2010G-20 Busan agenda will tackle key global issues
Korea outlined yesterday the main topics that top financial officials from the G-20 will discuss in Busan June 4 and 5 in preparation for the two G-20 summits that will occur later this year in Toronto and Seoul.
The Busan meeting takes place against the background of the continuing European sovereign debt crisis and fears that its effects will spread.
The meeting of G-20 finance ministers and central bank governors in the southern Korean port city will tackle an ambitious agenda, including the following issues:
* A report by the International Monetary Fund outlining the best and worst-case scenarios for the global economy to help policy makers achieve “strong, sustainable and balanced economic growth” within the G-20.
* Financial regulatory reform will likely be a contentious area since it includes the issue of a global bank tax and possible reforms of international credit rating agencies that were blamed for misjudging the riskiness of debt instruments that helped trigger the 2008-2009 global financial crisis.
The idea of a bank tax is being supported by several leading economic powers, including the U.S. and the U.K., which would impose the levy on big financial groups to guard against another financial crisis and build a reserve to provide bailout funds for the banking sector in case another crisis occurs.
However, the proposal is being opposed by emerging economies that believe they are not responsible for the financial problems that occurred in Western countries.
Officials at the Busan meeting are also expected to discuss the ways to overhaul the credit rating agencies after the U.S. Senate recently considered setting up a government body to assign debt rating duties to avoid conflicts of interest among the agencies in selecting clients.
* The reform of the IMF in response to demands by emerging economies, which want to change the voting quota and membership on the IMF’s board to increase their influence. This follows a decision by the World Bank two months ago to overhaul its voting quota that gave emerging economies an increased voice in decisions.
* The creation of global financial safety nets, which has been strongly pushed by Korea, to upgrade the IMF’s emergency lending facilities to support countries hit by sudden capital outflows.
* The gradual phasing out of state fossil fuel subsidies, estimated at $500 billion a year, which has been criticized for undermining energy security and adding to environmental problems.
However, funds for developing countries to battle climate change did not make it onto the agenda of the Busan meeting, indicating the issue may take a back seat after the failed effort to agree on a global climate change treaty at last December’s Copenhagen summit on climate change. The financing issue led to squabbling and deep rifts between advanced and emerging countries in Copenhagen.
http://www.einnews.com/world_news/
The Busan meeting takes place against the background of the continuing European sovereign debt crisis and fears that its effects will spread.
The meeting of G-20 finance ministers and central bank governors in the southern Korean port city will tackle an ambitious agenda, including the following issues:
* A report by the International Monetary Fund outlining the best and worst-case scenarios for the global economy to help policy makers achieve “strong, sustainable and balanced economic growth” within the G-20.
* Financial regulatory reform will likely be a contentious area since it includes the issue of a global bank tax and possible reforms of international credit rating agencies that were blamed for misjudging the riskiness of debt instruments that helped trigger the 2008-2009 global financial crisis.
The idea of a bank tax is being supported by several leading economic powers, including the U.S. and the U.K., which would impose the levy on big financial groups to guard against another financial crisis and build a reserve to provide bailout funds for the banking sector in case another crisis occurs.
However, the proposal is being opposed by emerging economies that believe they are not responsible for the financial problems that occurred in Western countries.
Officials at the Busan meeting are also expected to discuss the ways to overhaul the credit rating agencies after the U.S. Senate recently considered setting up a government body to assign debt rating duties to avoid conflicts of interest among the agencies in selecting clients.
* The reform of the IMF in response to demands by emerging economies, which want to change the voting quota and membership on the IMF’s board to increase their influence. This follows a decision by the World Bank two months ago to overhaul its voting quota that gave emerging economies an increased voice in decisions.
* The creation of global financial safety nets, which has been strongly pushed by Korea, to upgrade the IMF’s emergency lending facilities to support countries hit by sudden capital outflows.
* The gradual phasing out of state fossil fuel subsidies, estimated at $500 billion a year, which has been criticized for undermining energy security and adding to environmental problems.
However, funds for developing countries to battle climate change did not make it onto the agenda of the Busan meeting, indicating the issue may take a back seat after the failed effort to agree on a global climate change treaty at last December’s Copenhagen summit on climate change. The financing issue led to squabbling and deep rifts between advanced and emerging countries in Copenhagen.
http://www.einnews.com/world_news/
